as a options buyer, how do you decide your stoploss ?
There is no definite answer. However, stoploss can be based on any of the below.
- predefined support and resistance levels. ( Buy when the underlying instrument hits support and keep fixed percentage of SL )
- Based on indicator (for example: vwap), some ppl close their position or keep SL below the vwap value ( or any indicator ).
Anyone on short?